In the changing economic arena, the development trajectory of China and Japan has painted a fascinating historical picture.
Thirty years ago, in 1995, Japan's economy was far ahead of China in terms of size and per capita, showing an almost insurmountable gap.
However, the wheels of time are rolling forward, and in 2024, how has this economic map changed dramatically?
The year 1995 marked a glorious moment for the Japanese economy. That year,Japan's total GDP is as high as 5At 45 trillion US dollars, it accounts for nearly one-fifth of the total global economy, second only to the United States, and has become a key force in the global economy.
In this year, Japan's GDP even reached nearly two-thirds of the total U.S. economy, demonstrating the strength of the Japanese economy. In the field of manufacturing, Japan is unrivaled.
Whether it is electronics, automobiles, steel and shipbuilding, Japan's manufacturing industry leads the world with its high technology content and excellent quality, and has become the leading era of the "Made in Japan" brand.
However, in stark contrast to the splendor of Japan, China was still in the initial stages of reform and opening up in the 80s. At that time, China mainly relied on agriculture, the level of industrialization was relatively low, and economic growth mainly depended on primitive capital accumulation.
During this period, China's infrastructure construction was still weak, and the scale of basic industries such as highways, railways, and electricity was relatively small.
The income level of most Chinese can only meet the basic needs of life, and there is a huge gap compared with developed countries. In 1995, China's GDP was only $734.5 billion, far behind Japan's 545 trillion dollars. In terms of GDP per capita, the gap between China and Japan is a staggering 72 times.
In the late 90s, the Japanese economy began to take a turn. The collapse of the bubble economy dealt a heavy blow to the Japanese economy. With the increase in land prices, the Japanese banking sector and the entire financial system are facing a serious crisis.
Despite Japan's massive fiscal stimulus, the effect has been limited and economic growth has stagnated. In the 21st century, Japan's economic growth rate is still sluggish, and it has fallen into a state of long-term stagnation.
Japan's aging society, negative population growth, and saturation of the domestic demand market make it difficult for the Japanese economy to find new growth points.
At the same time, China's economy has ushered in rapid development driven by reform and opening up. In particular, after China joined the World Organization (WTO) in 2001, its economic growth has entered a new stage.
During this period, China's economy maintained an average annual growth rate of more than double digits, creating a miracle of economic growth.
By 2010, China's total GDP surpassed Japan's, making it the world's second-largest economy. As of 2023, China's GDP has reached 17$89 trillion, an increase of nearly 24 times from 1995.
China's rapid economic growth is due to the huge demographic dividend, high-level manufacturing, rapid urbanization and huge domestic demand market.
Since the beginning of the 21 st century, China has accelerated the strategic adjustment of its economic structure and paid attention to the development of the domestic demand market. The rapid development of the manufacturing and service sectors, especially the rise of high-end industries, has further strengthened the overall strength of China's economy.
At the same time, the deepening of China's economic structural reform and the cultivation of a market economy have provided a powerful impetus for economic growth.
By 2024, China's economy has formed a comprehensive industrial system from agriculture to industry to services, of which manufacturing accounts for 26% of GDP, services account for 54%, and agricultural output accounts for about 7%.
This structure of China's economy shows a balanced development of the economy.
In contrast, there is a clear imbalance in the current structure of the Japanese economy. The service sector is too inflated, while the manufacturing sector is relatively shrinking, which limits the growth potential of the Japanese economy.
Japan's tertiary sector accounts for 75% of GDP, while the share of manufacturing has fallen to around 25%. In addition, the Japanese economy is overly dependent on exports and has a limited domestic market, which further exacerbates the difficulties of economic growth.
After 30 years of development, the economic gap between China and Japan has changed fundamentally. China's economic power is growing, while Japan is mired in a long period of growth stagnation.
This change is not only visible in numbers, but also leaves a deep mark on the global economic map.
China's rapid economic growth has benefited from its continuous reform and opening up and the continuous improvement of its market economic system. With the introduction of a large amount of foreign investment, China has not only absorbed advanced technology and management experience, but also accelerated the process of industrialization and urbanization.
In this process, a series of economic policies actively pursued by China, such as vigorously developing an export-oriented economy, have also greatly promoted economic growth.
In addition, China's economic restructuring in the new century, especially the emphasis on the development of high-end industries, has enabled China's economy to no longer rely solely on traditional manufacturing, but to form a more diversified and high-quality economic development model.
In contrast to the dynamism of China's economy, Japan's economy has been stagnant for a long time since the collapse of the bubble economy in the 90s. The problems of the Japanese economy are mainly concentrated in the aging population, insufficient market demand, and insufficient innovation capabilities.
Japan's demographic problems, especially the continuous decline in fertility and negative population growth, have seriously constrained the potential of the economy.
In addition, Japan's lack of innovation in the field of emerging technologies has led to a gradual loss of advantage in global competition. Although Japan has a strong foundation in the traditional manufacturing sector, its competitiveness in emerging fields such as information technology and biotechnology is relatively weak.
In the international market, the rise of China has also had an important impact on the Japanese economy. With the development of China's manufacturing industry and the improvement of technology, Japan's share in the global market has gradually been compressed.
China has shown strong competitiveness not only in traditional manufacturing sectors, but also in emerging industries such as electronics and internet services, which further exacerbates the challenges for the Japanese economy.
Judging from the comparison of the economic structure of China and Japan, China has formed a more balanced and complete industrial system. China's manufacturing, services, and agriculture all play important roles in the economy, which allows the Chinese economy to be more agile in responding to various challenges in the context of globalization.
Japan's relatively homogeneous economic structure, high dependence on the service sector, and the declining competitiveness of the manufacturing sector make it more difficult for Japan to cope with changes in the global market.
All in all, the changes in the economies of China and Japan over the past 30 years reflect not only the differences in the internal policies and market environments of the two countries, but also the profound changes in the global economic landscape.
China's growing economic power is gradually moving closer to the level of developed countries, while Japan needs to find new growth drivers to meet the challenges of prolonged economic stagnation. This process of change is not only an important page in the economic history of the two countries, but also provides profound enlightenment and reflection for the global economy.
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